📉💰 What is the relationship between interest rate cuts and cryptocurrencies?
When the central bank lowers interest rates:
1️⃣ Saving in banks becomes less attractive (returns are weak).
2️⃣ Investors look for alternatives that yield higher profits, such as gold, stocks, and cryptocurrencies.
3️⃣ Low interest rates increase liquidity in the market, and a significant portion of it may head towards the crypto market.
🔹 Why cryptocurrencies specifically?
Because they are considered by some as a "store of value" like gold, especially Bitcoin, and with lower interest rates, investing in them becomes more enticing.
⚠️ But it is important to know: not every time interest rates drop means cryptocurrency prices will definitely rise, because there are other factors like government policies, global news, and market movements themselves.
💡 In summary: A decrease in interest rates often increases the demand for cryptocurrencies, but it is not a guarantee of profit… one must know how to balance opportunities and risks.
